Save
How to safeguard your finances through the pandemic
Australians are ill-prepared for any major setback financially, with one in five Aussies needing credit to get through unforeseen financial expenses, new research has found.
How to safeguard your finances through the pandemic
Australians are ill-prepared for any major setback financially, with one in five Aussies needing credit to get through unforeseen financial expenses, new research has found.
Research from comparison site Mozo has looked at how Australians fare financially when faced with unforeseen expenses or setbacks.
Only one in four Australians said they have the funds to weather unexpected costs and be financially buoyant, while the remaining 75 per cent admitted they would feel a degree of financial strain.
Half of working households currently have less than $7,00 in the bank, while one in 10 has less than $90 in their accounts right now.
“Unforeseen expenses are never a welcome surprise, and for many Australian families, the spread of COVID-19 is the most disruptive financial event that they’ve ever experienced – with hundreds of thousands likely to be out of work in the next few months,” said Mozo’s director and money expert, Kirsty Lamont.
However, even households that are lucky enough to have $7,000 in savings would only last 4.4 weeks if they found themselves without a stream of income.
“Mozo research has found that three out of four Australians are not financially comfortable when unforeseen expenses or unexpected circumstances arise. Forty per cent don’t have enough money at the end of every pay packet to put money into savings and half the nation is saving less than $2,004 a month.”
“The images of hundreds of people queued outside welfare offices all across the country is a reflection of just how hard many Australians are doing it,” Ms Lamont continued.
The key to safeguarding
The financial expert advises Aussies that the health pandemic shows the importance of safety net, given unexpected financial hits, while explaining how to build a financial buffer.
“Being stuck at home means our spending options are limited, so use this as an opportunity as a time to build a buffer. Aim to save at least 20 per cent of your take-home pay over the next few months,” Ms Lamont said.
“While this may seem like a major feat, you could be surprised at how much your outgoings have reduced. With a bit of fine-tuning, you could make major savings.
“Review your spending, categorise your purchases and look for unnecessary purchases or automatic deductions.
“Redirect money you’d normally spend out on things like dinners out, gym membership or new shoes towards a savings goal. Use your time at home as an opportunity to future-proof your finances,” she concluded.
About the author
About the author
How to budget
How to build wealth despite lifestyle inflation
As your income has increased over time, you may have expected to have more cash flow and savings. What you may have found, however, is that the higher your income is, the more you’re spending. This ...Read more
How to budget
‘Tried and tested’: Why age-old money advice still rings true
Day-to-day life is in no way normal this year, but leaning on lessons from the past is a great way to better equip ourselves for months more of uncertainty, according to a financial planner. ...Read more
How to budget
5 ways to improve your finances this financial year
Australia may be firmly planted within a recession, but with the advent of a new financial year, there’s still plenty to be gained from a “new year, new me” approach when it comes to money. ...Read more
How to budget
Here’s how Gen Z is changing the finance game
Generation Zers – those born between 1995 and 2012 – are leading the way when it comes to money responsibility and a more flexible view of finance, according to new research. ...Read more
How to budget
How to budget on JobKeeper and JobSeeker payments
With more than 3 million Australians likely to be on either JobSeeker or JobKeeper payments during the COVID-19 pandemic, many are wondering how they can survive off government assistance. ...Read more
How to budget
Why cash flow is king during COVID-19
Cash flow has never been so important, according to a chartered accountant. ...Read more
How to budget
4 financial changes to prepare for in 2020
From neobanks to rate changes and insurance hikes – a number of changes are set to take place in the coming year that could have both positive and negative ramifications for the financial position o...Read more
How to budget
Setting achievable financial goals in 2020
The beginning of each year is the perfect time to recalibrate and find your financial feet. Whether it’s an all-encompassing dream of living by the beach, a resolution to save 5 percent of your sal...Read more
How to budget
How to build wealth despite lifestyle inflation
As your income has increased over time, you may have expected to have more cash flow and savings. What you may have found, however, is that the higher your income is, the more you’re spending. This ...Read more
How to budget
‘Tried and tested’: Why age-old money advice still rings true
Day-to-day life is in no way normal this year, but leaning on lessons from the past is a great way to better equip ourselves for months more of uncertainty, according to a financial planner. ...Read more
How to budget
5 ways to improve your finances this financial year
Australia may be firmly planted within a recession, but with the advent of a new financial year, there’s still plenty to be gained from a “new year, new me” approach when it comes to money. ...Read more
How to budget
Here’s how Gen Z is changing the finance game
Generation Zers – those born between 1995 and 2012 – are leading the way when it comes to money responsibility and a more flexible view of finance, according to new research. ...Read more
How to budget
How to budget on JobKeeper and JobSeeker payments
With more than 3 million Australians likely to be on either JobSeeker or JobKeeper payments during the COVID-19 pandemic, many are wondering how they can survive off government assistance. ...Read more
How to budget
Why cash flow is king during COVID-19
Cash flow has never been so important, according to a chartered accountant. ...Read more
How to budget
4 financial changes to prepare for in 2020
From neobanks to rate changes and insurance hikes – a number of changes are set to take place in the coming year that could have both positive and negative ramifications for the financial position o...Read more
How to budget
Setting achievable financial goals in 2020
The beginning of each year is the perfect time to recalibrate and find your financial feet. Whether it’s an all-encompassing dream of living by the beach, a resolution to save 5 percent of your sal...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
